In recent years, cryptocurrency investing has evolved from being an exclusively spot trading practice to featuring a variety of products and services that allow users to pursue additional portfolio growth.
However, getting familiar with staking, savings, and a variety of decentralized finance (DeFi) practices can be a little daunting, especially for newcomers.
That’s where Binance Simple Earn comes into play. Binance’s crypto savings platform streamlines passive crypto investments, making them easy to understand and use.
In this article, we’ll explore what Simple Earn is and how it works.
What is Simple Earn?
Launched earlier this year, Binance Simple Earn is essentially a cryptocurrency savings account service offered by the Binance cryptocurrency exchange that allows users to earn interest on digital assets. In essence, the service allows users to earn passive income on their cryptocurrencies without having to actively trade them.
Binance Simple Earn offers competitive interest rates and both flexible and locked products, making it an attractive option for users looking to earn an extra return on their digital assets.
As of the time of writing, which is in the middle of December 2022, there are over 350 Simple Earn products available, covering virtually every popular digital asset in the space.
Differences between Flexible and Locked Simple Earn products
The main difference between the two types of Simple Earn products is the duration of the investment. Flexible-term products allow investors to withdraw their funds at any time, while. locked-term products have a fixed investment period, and investors cannot withdraw their funds until the end of the term without parting ways with rewards that have been accrued since the initial subscription had been made.
NOTE: You’ll lose all rewards accrued if you choose to redeem deposited crypto before the locked period ends.
As a rule of thumb, flexible-term plans provide a lower rewards rate than their locked-term counterparts.
How are Simple Earn rewards calculated and distributed?
The rewards users are eligible to earn for depositing their crypto on Simple Earn are usually higher for locker products than for flexible products. Also, the lengthier the lock period, the higher the rewards. Again, that’s just a rule of thumb, as there are massive differences between various products.
Simple Earn follows a very simple formula for calculating the rewards:
Rewards = Your Deposited Assets × APR/365
In other words, rewards are the sum of deposited assets multiplied by the Annual Percentage Rate (APR) divided by the 365 (the number of days in a year).
Interest rate on deposited crypto starts accruing at 00:00 UTC on the day after they were initially deposited. The rewards are deposited to a user’s spot account on a subsequent day, between 00:00 and 08:00 UTC.
How to subscribe to a Simple Earn product?
We’ve already mentioned that using the Simple Earn platform is quite straightforward. Here’s a step-by-step guide that can help you subscribe to your first Simple Earn plan. For the purposes of this guide, we’ll be subscribing to a locked-term ApeCoin product for the duration of 120 days.
Step 1: Open Simple Earn
First, you’ll need to log in to your Binance account. If you haven’t, you must first register a new Binance account. After that, select “Simple Earn” from the “Earn” drop-down menu,
Step 2: Search for Simple Earn plans
You can use the search field at the top of the Simple Earn homepage to find the product that fits your needs. For the purposes of this guide, we’ll be subscribing to an ApeCoin-based locked Simple Earn product for the duration of 120 days. Click “Subscribe” when you’re ready to proceed.
Step 3: Confirm your Simple Earn subscription
On the left side, you must enter the “subscription amount” and the duration of your plan. Duration options include Flexible, 10, 30, 60, and 120 days. Keep in mind that different options are available depending on the digital asset used.
The “Auto–subscribe” option (located in the bottom left corner) allows users to automatically resubscribe to a product upon its expiration. You can turn the toggle on or off, depending on your preference.
Once you’ve filled all the required fields, agree to the terms and conditions and click “Confirm”.
Congratulations, you’ve successfully subscribed to your first Simple Earn product.
Each product has a total subscription cap in order to make the service sustainable in the long term. In addition to the product-wide cap, each product has a per-user subscription cap as well, to ensure that each user has a fair chance at participating.
Without the individual user caps, wealthier Binance users would be able to take essentially exploit the system, leaving users with smaller portfolios unable to leverage Simple Earn’s high interest rates and daily rewards.
The bottom line: Make Binance Simple Earn your crypto savings account
Binance has streamlined its savings offering with the launch of Simple Earn, a single crypto savings solution that combines Flexible Savings, Locked Savings, and Locked Staking products.
If you are looking to generate passive income with your idle crypto assets, Binance Simple Earn may be the right choice for you. The new offering simplifies the process of earning interest on your crypto holdings, making it easier for investors to take advantage of Binance’s savings products.
David is a crypto enthusiast and an expert in personal finance. He has created numerous publications for different platforms. He loves to explore new things, and that’s how he discovered blockchain in the first place.